Final answer:
The statement that majority rule can fail to produce a single preferred outcome when there are more than two choices is true. This is an example of Condorcet's paradox, where collective preferences can be cyclic and no absolute majority for any option is found.
Step-by-step explanation:
True or false: Majority rule can fail to produce a single preferred outcome when there are more than two choices. This statement is true. In voting systems or decision-making processes, when there are more than two options, majority rule may not always lead to a clear outcome. This scenario is related to a concept in social choice theory known as Condorcet's paradox, which occurs when collective preferences can be cyclic (i.e., A is preferred over B, B is preferred over C, but C is preferred over A), even if the individual preferences are not. This creates a situation where no option is the most preferred in an absolute majority, leading to potential indecisiveness or the need for alternative decision-making strategies, like ranked-choice voting or runoff elections.